Misys loses chief of banking arm after just a month

Misys, the software and computer services group, has parted company with the chief executive of its banking division, Steve Vaughan, after only a month.

The group chief executive Kevin Lomax will assume the role until a replacement for Mr Vaughan can be found.

A spokesperson for Misys confirmed that Mr Vaughan left the company with immediate effect on Tuesday by mutual agreement and will receive no compensation for the loss of his position.

According to a statement released by the company yesterday, the decision was made after it became clear there were "material differences" between Mr Vaughan's vision for the banking division and that of the Misys board.

Mr Vaughan was widely perceived to be a positive appointment for the banking division, which has been struggling in recent years in a highly competitive market. In his previous role, he was responsible for turning around the software group Synstar before it was sold to the US computer services giant Hewlett-Packard.

Although not a full board member, a source close to Misys confirmed that Mr Vaughan was on a "substantial" remuneration package, and that the differences of opinion between the board and Mr Vaughan became apparent only in the past two weeks.

The company plans to continue with its strategy for turning around the banking division, based on organic growth and merging its wholesale and retail banking operations. The spokesperson declined to say where the board had differed with Mr Vaughan's strategy.

Mr Lomax, a non-executive director of Marks & Spencer, has been at Misys since founding the company in 1979. He was executive chairman from 1985 until November last year when Sir Dominic Cadbury took over the role of chairman.

Mr Lomax was unavailable for comment. Shares in Misys closed down 1.5p at 216p.